Bank Negara issues alert about Coinzer

KUALA LUMPUR: Bank Negara Malaysia has issued an alert about the cryptocurrency platform called Coinzer as digital currencies are not legal tender in Malaysia.

It said that it does not authorise or endorse Coinzer. 

“The use of BNM logo and Jata Negara on the proposed physical coin design, white paper and website are unauthorised,” it said.

Bank Negara advised the public to exercise caution and carefully evaluate the risks associated with investment in digital currencies.

“Digital currencies are not legal tender in Malaysia. Accordingly, digital currencies are not covered by prudential and market conduct standards or arrangements that are applicable to financial institutions regulated by Bank Negara,” it said.
Meanwhile, in response to Bank Negara's caution, Coinzer said the physical coin's design was based on conceptual design, which were initially intended to be used as a token of appreciation to our partners and contributors. 

The company said the physical coin design proposal however had been removed from its latest edition of Whitepaper published on its official website on March 7, “since we realised that the proposed conceptual design uses BNM logo and Jata 

Negara in which should not be used without proper authorisation”. 

Coinzer said Blockchain technology and cryptocurrency were new and a mostly unregulated industry.

Coinzer pointed out that regulators in many countries especially Malaysia are aware that this new technology and financial innovation will not only enhance productivity of economic activities, but also make financial intermediation more seamless. 

“Coinzer is working closely with the Malaysian Government and the relevant authorities to acknowledge and approve our operation in Malaysia as well as to help them better understand both Coinzer and the industry more broadly: how 

cryptocurrency platforms like Coinzer work, how Coinzer will help build a better economy for Malaysia and how other countries are proposing regulation,” it said.